Facebook co-founder renounces citizenship ahead of IPO

[mandym]

He lived the American Dream -- and then he packed up and left.

Facebook co-founder Eduardo Saverin, who made billions off the world’s most popular social network, stands to rake in about $3.84 billion from his 4 percent share of Facebook, Bloomberg reported.

American citizens pay several taxes, including taxes on salary and investments. Saverin would be hit with about $600 million in capital gains taxes whenever he sold the Facebook shares (or "realized the income," in financial speak).

But Saverin may not have to pay -- he's chosen to renounce his U.S. citizenship for residence in Singapore, Bloomberg reported, where there is no capital gains tax.

Read more: http://www.foxnews.com/scitech/2012...unces-citizenship-ahead-of-ipo/#ixzz1ubTZs4n9

 

[mont974x4]

My understanding is that America is the second in a dual citizenship status for him, and he lives in another country.

If I were him, I would do the same thing.

 

[LadyEagle]

Me, too. Especially when he keeps hearing about raising taxes on the rich....blah, blah, blah.

 

[billwald]

He will still be able to buy congress through his company.

 

[Squire Robertsson]

IIRC, he's Brazilian by birth and naturalized American. The crux of the problem is under US tax laws, a US citizen's income tax is levied on his total world income no matter his\her place of residency or place of income. IOW, I'm working for a firm in a foreign country and have been for the last ten years. I'm not paid in the local currency not US dollars. I pay all of the required taxes of my place of residency. The US Tax Code still requires me to file a 1040, even though not one red sou\pence\kopek\pfennig\ect. was earned on US soil.